Rentech gets $50 million term loan through Blackstone's GSO Capital

By Jennifer Chiou

New York, April 10 - Rentech, Inc. said it obtained a $50 million five-year term loan facility through GSO Capital Partners LP, the credit investment arm of Blackstone.

The loan was issued at an original issue discount of 98 and is prepayable without penalty after the first year.

According to a press release, interest will accrue at Libor plus 700 basis points, with a 1% Libor floor.

There is a $75 million accordion feature.

Along with funds raised from the issue of $100 million of convertible preferred stock to GSO, proceeds will be used to fund growth in Rentech's wood fiber processing business and for general corporate purposes.

The release noted that the collateral for the loan will be 2.8 million common units of Rentech Nitrogen.

"In addition to funding our immediate growth plans, Blackstone/GSO's investment gives Rentech a long-term partner with a proven track record in successfully evaluating and investing in new opportunities," D. Hunt Ramsbottom, president and chief executive officer of Rentech, said in the release.

Rentech is a Los Angeles-based provider of clean energy services and nitrogen fertilizer.

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